The price of bitcoin has risen again to the stars in the last month. The current historical record from December 2017, when the most famous cryptocurrency was just below $ 20,000, may be at risk. While the long-awaited May halving – that is halving bitcoinwhich for miners kryptoměny meant half the reward – it did not have much influence on the development of its price, in the last few weeks, those interested can literally beat themselves after “virtual gold”, which also leads to a significant increase in price.
Kryptodivočina
According to economists, the current bitcoin twist is caused by several factors – the consequences coronary crisis they take over world economies and many people are looking for alternative ways to save money in the prospect of a new economic crisis, o bitcoin At the same time, they are increasingly interested in large financial institutions, and as is often the case with every investment fever, a lot of small speculators are also jumping into the bandwagon.
On the contrary, the increased demand for bitcoins by people – it must be added that, as expected, does not appeal to states and central banks, which will continue to try to push cryptocurrencies into the gray zone, sometimes even illegality. Next year, a large wilderness will probably be waiting for us in the cryptocurrencies.
How do the respondents of our survey view the situation around bitcoin? According to them, what is the cause of the rocket growth in the value of the largest cryptocurrency in the last month? Will bitcoin be able to exceed the all-time high in the near future and break the $ 20,000 mark? And what will be key for cryptocurrencies next year?
Jaroslav Brychta
head of the analytical team of X-Trade Brokers
Bitcoin grows because more money flows into it than it drains. This may be due to the news that PayPal will offer customers the opportunity to pay in bitcoins, that dinosaurs such as Stanley Druckenmiller are also starting to invest in bitcoin, that institutional investors are gradually becoming interested in it, or that investors expecting a collapse of fiat currencies pandemic and high deficits. But the reason for its steep growth may be simply that it is growing. Retail is looking for a new toy after technology, Tesla or Hertz. Hard to say. The constant remains that it is an interesting financial asset, which is also an interesting technology.
Martin Leskovjan
co-founder of Parallel Polis
—
The markets are in an extremely optimistic mood and there are not many factors that would spoil it, at least in the short term, so if the record has not been set at the time of issuing this answer, it will probably fall soon. There are many reasons why this is the case, which adds nutritious fuel to the rocket. In addition to the obvious ones, which almost everyone talks about, there is a bit of background behind the revolutionary changes in the information that Chinese banks have included bitcoin in the portfolio of large investment funds intended for the general public.
The future of cryptocurrencies will no doubt be played out next year – censorship and control are far from as impracticable as we have been, and there is a risk that unproven “anonymous” acts will be very difficult to trade, possibly destroying the original meaning. cryptocurrency.
Josef Tětek
analyst at TopMonks
—
As always, the only real cause is a greater willingness to buy than to sell. We do not see people’s heads, we judge only from the consequences of their actions; the rising price is just such a consequence. In my opinion, a combination of several factors is behind the steady rise in prices in the last six months. First, an unprecedented monetary policy: the dollar’s money supply has risen since January (aggregate M2) by an incredible 21 percent. This money flows into financial instruments, but also into bitcoin – investors are looking for where to park new money.
Secondly, this monetary policy raises legitimate concerns about the future stability of the dollar (ie the euro, the pound, the yen and others – monetary policy has broken free from the chain everywhere we look). For bitcoin, the narrative of potential global money is gradually beginning to prevail – not just “cryptocurrencies”. As I write in my prince, bitcoin is also a separation of money from the state. It used to sound crazy, today people take this idea with less skepticism (especially those who have the most to lose and gain on paradigm shifting).
Third, bitcoin is simply already mainstream. In recent years, the infrastructure of wallets and stock exchanges has developed greatly, people have become accustomed to the idea of bitcoin, more and more ordinary people are starting to save in it, and the allocation of free funds by companies is also growing.
Next year, it would be nice if governments left bitcoin and its ecosystem alone. However, this will not happen and one can expect a tightening of AML / KYC processes, which is likely to cause a greater expansion of the bitcoin “vector”.
Karel Fillner
promoter of cryptocurrencies and operator of btctip.cz, CEO of Invictus mining
—
In recent months, one resistance after another has been overcoming, and I think institutional investors have the lion’s share. Not to be missed are the media announcements that accompany huge fund purchases, such as the Grayscale Bitcoin Trust (which has accumulated more than 500,000 bitcoins worth more than $ 8 billion today), or publicly traded companies where MicroStrategy, for example, has invested much of its financial reserves in bitcoins. ($ 425 million). Of course, this also affects smaller investors and the public. And this is also, in my opinion, the reason why, even with the current rocket growth, almost all attempts at a larger correction are captured in time. All this seems to be related, among other things, to how similar institutions, but also the public, perceive an accelerating spiral of quantitative easing, which leads to a massive devaluation of key fiat currencies – logically looking for alternatives that will serve as protection against inflation.
As for overcoming the historical maximum, I do not dare to estimate the time frame, it can be as much in a week as in half a year, the term “foreseeable time” is sufficient. After breaking the maximum, I think we will revive the term “exponential growth”.
For bitcoin and other cryptocurrencies next year, the key will be how the world economy will develop in the current coronary crisis – with more trouble, we can expect the sale of sufficiently liquid assets, including bitcoin. In the long run, however, despite various corrections and volatile jams, bitcoin is on track. And not only in terms of price development, bitcoin still exceeds one technological milestone after another.
Dominik Stroukal
Chief Economist of the Creditas Bank
—
No one should be surprised. As fans of bitcoin, we have been saying this for a long time – bitcoin makes sense and will grow in the long run. It is rare, people are increasingly seeing how the state monetary policy does not work and are looking for alternatives. But bitcoin is mainly evolving – Lightning Network, Schnorr, Taproot… That it doesn’t tell you anything? The great thing is that you don’t even need to know it and it works, respectively the first mentioned innovation is already working and the other two are in development. Bitcoin is obviously pushing for usability, and all developers are working hard to make it work as it should. Each of its problems is an incentive to innovate. Our money can’t do that.
Since the last big growth in 2017, bitcoin is a bit further, it is more usable, it is easier to store it and more people know about it. And more people use it. Bitcoin is likely to shoot $ 20,000 this year. But what’s next? Whatever the price, at the end of the day we are still looking for usability and we still have gaps there. The price only reflects the demand, the supply of bitcoin is clearly given and known in advance. The better the bitcoin, the higher the price, even if it will be like a roller coaster, as is usual with bitcoin.
Lukáš Kovanda
Chief Economist of Trinity Bank and a member of NERV
—
Last year, at the end of the year, the total debt of economically developed countries accounted for 380 percent of their gross domestic product. At the end of the third quarter this year, it jumped to 432 percent of GDP. Advanced economies can no longer be satisfactorily borrowed without total reformatting. But this means that either creditors will lose their astronomical assets as part of some debt relief, or there will be a noticeable inflation that will deal another blow to all those who are still doing such a naive activity as saving. This is how debt-monetary socialism, which has flourished in the West for the last thirty years and which, for God’s sake, is still called the market economy, or even capitalism, turns out to be.
Its essence is the depression of central bank interest rates, which encourages further indebtedness and whose effect has its limits. Within this variant of socialism, large parasitic strata of the population are emerging and living, lazy and comfortable, who are rising from debt while still rioting in the streets – that “evil capitalism” is said to be destroying their lives. The increasingly narrow group of the population is productive, but thanks to their daily practice and close connection with economic reality, they are aware that some great reformatting must naturally occur. These people therefore invest – for example in real estate or gold, but increasingly also in bitcoin. He is well aware that with large reformatting, bitcoin and some other cryptocurrencies can best protect their property. Even better than real estate, which is likely to be widely nationalized as part of the reformatting, or gold, which in turn is likely to be confiscated under the threat of a long prison.
Ondřej Tůma
–
